Insurance Crisis Solved

The first time that a national insurance program was proposed in congress (and failed) was in 1920 under President Woodrow Wilson.  It failed again in 1935, 1949 and most recently in 1994 under the Clinton administration.  Here’s a rundown:

1920 – Pres. Woodrow Wilson, Democrat
1935 – Pres. Franklin D. Roosevelt, Democrat
1949 – Pres. Harry S. Truman, Democrat
1994 – Pres. William, J. Clinton, Democrat

And of course…

2009 – Pres. Barak H. Obama, Democrat

It’s interesting that every time health care legislation has been proposed, there was a democrat in the White House.  This is to be expected because as we all know, only the Democrats care about the people. Republicans never have. (Please note sarcasm, I would hate to be miss-quoted)

So basically – for 89 years Democrats have been trying to shove this ‘Socialist Medicine’ crap down our throats. And for 89 years we (the people) have been able to beat them off. But it looks like our fight is drawing to an end. With the Socialist Barak Obama in the White House, a Congress that is controlled by democrats who are more left than most communists and impotent Republicans rounding out the minority, you can bet your ass that socialized medicine is coming to America.  Resistance is Futile.

It’s a shame. Because the solution to our skyrocketing medical costs is so simple.  All you have to do is understand what caused the costs to skyrocket in the first place – then, just eliminate the cause. And do you know what the cause is? Well folks, here it is – I N S U R A N C E.

That’s right. The reason our costs are so high is because of insurance. Not the lack of it. Look, the average doctor visit (gen. Practitioner) is $35.00. Why? Because that is all that most insurance companies will pay. If all of a sudden they decided they would pay $65.00, guess what the visit would cost. That’s right, it would cost $65.00

This food chain follows through all aspects of our health care system. From equipment manufacturers to pharmaceuticals.  From general practitioners to surgeons & anesthesiologists.  As long as there is someone who is willing to pay the cost – the cost will continue to rise.  (ie: supply / demand) On what planet do you think a doctor would EVER charge less than what would be paid by insurance? Under what circumstances would a pharmaceutical company EVER charge less for a drug then they would be paid by an insurance company?  It would never happen. Why is it that the cost of “Chantix” a anti-smoking pill, is about $100? Because it’s not covered by insurance and that is what people are willing to pay. And as more companies make the same kind of pill, the cost comes down.

The simple fact is that insurance companies jack up the entire supply/demand chain. They create an entire market where demand is always bigger than supply.  More people go to the doctor today than ever before in history. Is it because we are more sick than we have ever been? No. It’s because we have this ‘go to the hospital for free’ card. Name me one other industry where for $300.00 / month you can use $50,000 in services?  More people take drugs today than ever before. Is it because we’re all drug addicts? (Debatable) Not really. It’s because with that little card in our wallet we can get $200.00 of pills for six bucks.

The problem with our system is that we have TOO MUCH insurance, not too little.

If you really want to fix our system – outlaw all health insurance. This would not only stop the rising costs, but it would deflate the system – overnight. Just as the cost of a Hummer dropped 60% when fuel costs went up, so too would be the cost of our health services. If there is no one who will pay $40,000 for surgery, the cost won’t be $40,000. If no one is willing to pay $100 for a doctor visit, Doctor visits won’t cost $100. Without artificial inflation, health care is just like any other industry. Supply / Demand.  It’s not like doctors will stop doing the surgery. They will just have to charge less – and will actually make more money doing it. The effect ripples through every aspect of the industry.

I remember a day back in the 70’s when my mom had to take me to our family doctor.  The doctor’s visit was $20.00 and there was no insurance. I remember the receptionist asked my mom, “how much of the $20.00 can you pay today?” (Can you believe that?) My mom replied, “I can give you $5 today and drop off $15 next week. Is that ok?” “No problem” was the response. Followed by, “If you need anything else or he doesn’t feel better in a day or two bring him back in.” Talk about the good ol’ days.

And guess what? As soon as that doctor began to accept insurance, his costs went up; his fees went up; and finally, he gave up and retired early at age 50.

Our Insurance Crisis can be solved, and the solution is simple. Yet no one has the guts to do it.  But you won’t have to just take my word for it. If you pay attention you will be able to see the effects of this first hand. Pay real close attention to the costs of health care for about the next 18 months. You ARE going to see a drop in inflation of the Health Care industry. Why? It’s not because of Obama. (Although you can expect him to take credit). It’s because people are unemployed and thus fewer people will have insurance. Don’t expect a big drop. Unemployment will probably peak at about 11% – 12% of the population. So it’s not going to be a big drop. But it is enough to prove my point.

Assuming anyone is actually listening.

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